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Organic Beef


Overview


According to the National Cattlemen's Beef Association, the value and volume of natural/organic beef sales during the first quarter of 2009 declined from retail sales during the first quarter of 2008. However, the market share of natural/organic beef continued to trend upward, rising from 2.5 percent in 2007 to its current high of 2.7 percent in terms of value and from 1.4 percent in 2007 to a current high of 1.8 percent in terms of volume. The price of natural/organic beef averaged $5.49 in the first quarter of 2009, with consumers paying a premium of $1.91.

As demand for organic products increased, more land in the United States was converted to organic production. As of 2008, the United States had 4.1 million acres used for organic production. Of that amount, 1.6 million acres were planted to organic crops and 1.8 million acres were organic pastureland/rangeland. Texas accounted for 13 percent of U.S. organic pasture, followed by (in order): California, Montana, New Mexico and South Dakota. The total value of organic livestock and poultry sales in 2008 was $316.5 million, and the total value of organic livestock and poultry product sales that year was $906.2 million.   (2008 Organic Production Survey)


The number of beef cows certified organic grew 428 percent between 1997 and 2002, from 4,429 head to 23,384 head. Growth in certified organic beef cows slowed between 2002 and 2005, but by 2005 36,113 beef cows were certified organic. As of December 31, 2008, 43,782 beef cows were certified organic. The top five states producing certified organic beef cows in 2008 and the total number produced that year were (in order):

  1. California - 5,081 head
  2. Wyoming - 4,615 head
  3. Wisconsin - 2,943 head
  4. Idaho - 2,447 head
  5. South Dakota - 2,391 head

May 2009 ... Organic Beef

 

Marketing

Processing/Manufacturing

  • American Association of Meat Processors (AAMP) - This association represents more than 1,800 small- and medium-sized meat, poultry and food businesses.
  • Labeling Guidance, Food Safety and Inspection Service, USDA - This site includes procedures, policies, a listing of ingredients, packaging materials and other related links.
  • North American Meat Processors Association (NAMP) - This nonprofit trade association provides information and technical services to the meat-processing industry.
  • Packing House Byproducts, Iowa State University, 2003 - Large packing plants have found markets for the "last squeal" of the pig. How can smaller operations compete without the quantity of animals? This paper looks at small and medium-size beef and pork slaughterhouses and the alternatives for the major by-product categories.
  • U.S. Beef Packing Industry Profile, Iowa State University, 2003 - The beef sector of the U.S. agricultural economy is dominated by four major packers who control more than 83 percent of the federal slaughtering. A niche exists for smaller single plants that compete in market segments not occupied by major packers.

Production

Businesses/Case Studies

  • Dakota Beef, Howard, South Dakota - This natural and organic beef operation stresses vertical coordination.
  • Half Circle Ranch, Belgrade, Montana - This ranch is certified organic by the Organic Crop Improvement Association (OCIA). Cattle are raised naturally--no growth stimulants, biological shots or other potentially harmful shots are administered. If a medical shot becomes necessary at any time during an animal's life, Half Circle Ranch will sell this animal at a local auction as commercial livestock and thereby remove it from the ranch.
  • Larsons Greenfarms, Brodhead, Wisconsin - This operation raises the majority of its own organic feedstuffs but also purchases organic feedstuffs from area producers.
  • Mesquite Organic Foods, Aurora, Colorado - This company provides certified, grass-fed organic beef.
  • Organic Beef, The New American Farmer, Sustainable Agriculture Research and Education (SARE),USDA - Includes eight organic beef operations located in Alabama, Idaho, Kansas, Kentucky, Nebraska, South Dakota, Texas and Wisconsin.
  • Organic Valley Family of Farms, LaFarge, Wisconsin - This group of farms claims to be the largest organic farmer-owned cooperative in the United States with 750 farm families in 25 states. It markets beef and other meats under its Valley's™ Organic Meats brand.
  • Prather Ranch, Macdoel, California - This ranch has been certified organic by Quality Assurance International. Cattle are raised without added hormones, antibiotics or animal-sourced proteins. The beef is processed in a private, USDA-inspected facility on the ranch.



Links checked in October 2009.

Related Links

Organic Livestock and Poultry on Certified and Exempt Organic Farms: 2008, 2008 Organic Production Survey, National Ag Statistics Service, USDA, 2010.

Organic Industry Trends

 

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